---

     T R O U B L E D   C O M P A N Y   R E P O R T E R

                            A S I A   P A C I F I C

             Friday, July 21, 2000, Vol. 3, No. 141

                                   Headlines


* A U S T R A L I A *

LIBERTYONE LTD: Takeover offer launched
LIBERTYONE LTD: Takeover offer subject to conditions
TRANSFIELD HOLDINGS: $92M losses claimed


* C H I N A  &  H O N G  K O N G *

CARRYMAN INDUSTRIAL LTD: Facing winding up petition
CATIC INT'L HOLDINGS: Rights offer to change fortunes
CHI WO KNITTING FACTORY LTD: Facing winding up petition
CITY PEAK INVESTMENT LTD: Facing winding up petition
FAIR FUND INDUSTRIAL(GROUP)LTD: Facing winding up petition
FIRST SINO HOLDINGS LTD: Facing winding up petition
GOLDTEX ENTERPRISES LTD: Facing winding up petition
GOOD FAMOUS (CHINA) LTD: Facing winding up petition
GRAND HOPE HOLDINGS LTD: Facing winding up petition
HAINAN INT'L TRUST: Central Bank may shut it down
LAM SOON (HK): Posts 6-month loss
WAI HING CHINA INVEST.LTD: Facing winding up petition


* I N D O N E S I A *

BANK DAIICHI KANGYO INDO.: IBRA asset sale this year
BANK HANVIT INDO.: IBRA asset sale this year
BOB HASAN: IBRA asset sale this year
MODERN GROUP: IBRA asset sale this year
MOSQUITO COIL GROUP: IBRA asset sale this year
PT FICOR SEKURITAS: IBRA asset sale this year
PT INDOMART: IBRA asset sale this year
PT INDOMILK: IBRA asset sale this year
PT INDOMIWON: IBRA asset sale this year
PT INDOSIAR: IBRA asset sale this year
PT KARIMUN GRANITE: IBRA asset sale this year
PT OLEOCHEMICAL: IBRA asset sale this year
PT SALIM COAL: IBRA asset sale this year
PT SULFINDO: IBRA asset sale this year
SJAMSUL NURSALIM: IBRA asset sale this year
USMAN ADMAJAJA: IBRA asset sale this year
WISMA BCA: IBRA asset sale this year


* J A P A N *

SEIYO CORP: Failure to burden banks with $3.2B loss


* K O R E A *

CENTRAL BANKING CORP.: Merger fails as finances lacking
DAEWOO CORP.: Creditors fail to approve break-up plan
DAEWOO GROUP: FSS suing former management
HYUNDAI ELECTRONICS: Sells stake, proceeds to reduce debt
WOOBANG HOUSING & CONST.: Creditors reject fresh funds


* M A L A Y S I A *

DIJAYA CORP: SC approves issue extension,debt pymt scheme
KYM DEVELOPMENT: Sells some properties to pay down debts
MYCOM BHD: Agreement with creditors rumored
SCK GROUP BHD: SC approves proposed restructure scheme
TELEKOM MALAYSIA: NTT aborts stake talks


* P H I L I P P I N E S *

PHILIPPINE NAT.BANK: Gov't okays Tan stake purchase
URBAN BANK: Bancommerce takeover hits snag


* S I N G A P O R E *

METALOCK: Cash struggle turns to board struggle


* T H A I L A N D *

BANGKOK WATER RESOURCE: SCB files bankruptcy suit
SIAM CITY BANK: Newbridge to resubmit bid
SRITHAI SUPERWARE PLC: To cut its debt burden
TPI POLENE: Creditors okay restructure deal


=================
A U S T R A L I A
=================

LIBERTYONE LTD: Takeover offer launched
---------------------------------------
The mystery surrounding a potential takeover of Australian
internet media company LibertyOne Ltd ended yesterday, with
U.S.-based CyberSentry formally lodging its bid.

Analysts were on Tuesday sceptical about any takeover
taking place, with the only evidence being an overseas news
report outlining the little-known CyberSentry's plans.
But the bid became reality yesterday and the same analysts
said CyberSentry could be successful.  This is despite the
CyberSentry offer valuing Liberty One's shares at just 30c.

LibertyOne's shares closed yesterday at 34.5c and on March
13 were worth $1.44.  In October last year, they were worth
$2.56.  Yesterday, they closed at 30c.  "I would think the
shareholders will accept this one," a Melbourne-based
internet analyst said.

The analyst said LibertyOne was running low on cash and had
disappointed the market in recent months.  "I think the
industry is ripe for rationalisation and LibertyOne is a
company which has seen a turnover of management and a
failure to stimulate any interest in its websites," the
analyst said.

In a statement to the Australian Stock Exchange yesterday,
LibertyOne said it had received formal correspondence from
CyberSentry in relation to the takeover.  It advised
shareholders "to take no action at this time."  (The Border
Mail Online  20-July-2000)

LIBERTYONE LTD: Takeover offer subject to conditions
----------------------------------------------------
The faxed takeover offer also said the offer was subject to
several conditions including that CyberSentry, which is
listed on the American Stock Exchange, complete a two-for-
one share split to increase the number of shares on issue
to 56 million.

CyberSentry would then swap 54 million shares for
LibertyOne's 378 million and create a combined company 51
per cent owned by CyberSentry shareholders and 49 per cent
by LibertyOne shareholders. The company would then change
its name to VisionNet and apply for a dual listing to trade
on the Australian Stock Exchange and the Nasdaq.

Mr Kristan said in the fax he had reviewed Australia's
corporation takeover law and discussed the deal with law
firm Blake Dawson Waldron.  Ms Anderson, who said Mr
Kristan had not yet returned her phone call, claimed the
fax contained a number of inconsistencies, including
reference to CyberSentry being a Nasdaq-listed company.

Ms Anderson said that under Australian law, CyberSentry had
two months to make a formal takeover offer.  "If that
happens, it will be up to the LibertyOne board to make a
proper assessment of the deal and make a recommendation to
shareholders," she said.  (The Age  21-July-2000)

TRANSFIELD HOLDINGS: $92M losses claimed
----------------------------------------
One of Australia's largest construction companies,
Transfield Holdings, is in breach of its banking covenants
and is suffering large losses from its global operations.

The revelations are contained in court documents for the
legal fight between the former Transfield managing director
Mr Marco Belgiorno-Zegna and his immediate family members.
They come as Transfield is examining a $300 million
sharemarket listing of some of its key assets.

It has emerged that Transfield and its ultimate holding
company, the privately owned Exben, considered a float to
allow Mr Belgiorno-Zegna to divest his interests in the
group and head off a damaging feud involving his high-
profile family.  Mr Belgiorno-Zegna is seeking to wind up
Exben because of disagreements with his father, Mr Franco
Belgiorno-Nettis, and his two brothers Guido and Luca
Belgiorno-Nettis, about the management of the group and its
mounting losses.

In a statement of claim lodged in the Supreme Court of NSW,
Mr Belgiorno-Zegna claims Transfield has lost more than $92
million since 1996 and faces financial pressures from its
Asian operations, particularly an energy project in the
Philippines. In its response Exben acknowledged
Transfield's annual accounts since 1999 would show
continuing losses in its profit and loss statements and
that it had been in breach of its interest cover ratio. The
group's primary financier is Commonweath Bank.

Mr Franco Belgiorno-Nettis, the patriarch who co-founded
Transfield after migrating to Australia in 1951, has filed
an affidavit saying his health is suffering because of the
litigation.  He has been receiving treatment for stress-
related high blood pressure and a heart malfunction.

"I am 85 years old," he said in the affidavit. "I believe
it has been caused by the stress suffered by me as a result
of the proceedings commenced by my son MBZ to wind up my
family company."

Mr Belgiorno-Zegna's statement details disagreements with
his family over the quality of Transfield's management of
several projects and claims that since late 1999 he has
been effectively excluded from undertaking managerial or
executive functions. He says Transfield's financial
position deteriorated since July last year, he has no
confidence in his brothers' ability to manage the business,
and their relationships have broken down.

The defendants, Exben and four members of the Belgiorno-
Nettis family, say Transfield incurred losses when Mr
Belgiorno-Zegna was the sole managing director in 1997 to
1999 and that its investments in various projects have
increased in value.

The defence document said Mr Marco Belgiorno-Zegna had
"unclean hands" and had not used a shareholder's agreement
to divest his shares.  The court case comes after failed
discussions between the parties, which started around May
1997, over Mr Belgiorno-Zegna's desire to withdraw from
Exben as a shareholder.

After a meeting in November 1999, Messrs Guido and Luca
Belgiorno-Nettis said they were no longer interested in a
restructure contemplated in a memorandum of understanding
entered into in May 1999.  At that meeting, Mr Guido
Belgiorno-Nettis was appointed managing director. Mr
Belgiorno-Zegna wanted an independent in the job. (The
Australia  20-July-2000)


==============================
C H I N A  &  H O N G  K O N G
==============================

CARRYMAN INDUSTRIAL LTD: Facing winding up petition
---------------------------------------------------
The High Court of Hong Kong SAR, Court of First Instance,
has scheduled a hearing on July 26 on the petition of Lo
Ngan Fung for the winding up of Carryman Industrial
Limited. A notice of legal appearance must be filed on or
before July 25.

CATIC INT'L HOLDINGS: Rights offer to change fortunes
-----------------------------------------------------
Loss-maker Catic International Holdings Ltd., an aluminum
products maker controlled by an aerospace company owned by
China's government, said it will raise HK$183.7 million
($23.6 million) in a 5-for-1 rights offer to raise money to
buy a power plant.

The company, which has posted losses in three of the last
four years, is betting that the power plant in Hangzhou,
capital of Zhejiang province, will provide more stable
earnings than its unprofitable aluminum businesses.

"The company has been exploring investment opportunities
which would increase the earnings base of the group," said
Yang Chunshu, Catic's chairman, in a statement.

Catic said it will offer 1.836 billion new shares to its
shareholders at 10 H.K. cents each. The stock, suspended
yesterday, last traded at 36 H.K. cents.  The company said
it will use HK$65 million from the proceeds to buy a 70
percent stake in the power plant. About HK$30 million will
be used to repay debt, and HK$40 million will go toward
financing existing business in aluminum building facade
work in Hong Kong and China. Catic was formerly Far East
Aluminium Ltd., until a takeover in August 1999.
(Bloomberg  20-July-2000)

CHI WO KNITTING FACTORY LTD: Facing winding up petition
-------------------------------------------------------
The High Court of Hong Kong SAR, Court of First Instance,
has scheduled a hearing on August 2 on the petition of The
Daiwa Bank Limited for the winding up of Chi Wo Knitting
Factory Limited. A notice of legal appearance must be filed
on or before August 1.

CITY PEAK INVESTMENT LTD: Facing winding up petition
----------------------------------------------------
The High Court of Hong Kong SAR, Court of First Instance,
has scheduled a hearing on August 30 on the petition of Sin
Hua Bank Limited for the winding up of City Peak Investment
Limited. A notice of legal appearance must be filed on or
before August 29.

FAIR FUND INDUSTRIAL(GROUP)LTD: Facing winding up petition
----------------------------------------------------------
The High Court of Hong Kong SAR, Court of First Instance,
has scheduled a hearing on August 2 on the petition of Grow
Wealth Property Investment Limited for the winding up of
Fair Fund Industrial (Group) Limited. A notice of legal
appearance must be filed on or before August 1.

FIRST SINO HOLDINGS LTD: Facing winding up petition
---------------------------------------------------
The High Court of Hong Kong SAR, Court of First Instance,
has scheduled a hearing on July 26 on the petition of
Banque Nationale de Paris for the winding up of First Sino
Holdings Limited. A notice of legal appearance must be
filed on or before July 25.

GOLDTEX ENTERPRISES LTD: Facing winding up petition
---------------------------------------------------
The High Court of Hong Kong SAR, Court of First Instance,
has scheduled a hearing on August 2 on the petition of The
Hongkon and Shanghai Banking Corporation Limited for the
winding up of Goldtex Enterprises Limited. A notice of
legal appearance must be filed on or before August 1.

GOOD FAMOUS (CHINA) LTD: Facing winding up petition
---------------------------------------------------
The High Court of Hong Kong SAR, Court of First Instance,
has scheduled a hearing on August 23 on the petition of
Panasonic SH Industrial Sales (Shenzhen) Co.Ltd. for the
winding up of Good Famous (China)Limited. A notice of legal
appearance must be filed on or before August 22.

GRAND HOPE HOLDINGS LTD: Facing winding up petition
---------------------------------------------------
The High Court of Hong Kong SAR, Court of First Instance,
has scheduled a hearing on August 30 on the petition of The
China State Bank Limited for the winding up of Grand Hope
Holdings Limited. A notice of legal appearance must be
filed on or before August 29.

HAINAN INT'L TRUST: Central Bank may shut it down
-------------------------------------------------
China's central bank said it may shut down Hainan
International Trust & Investment Corp (Hitic), marking the
biggest failure of a Chinese provincial investment firm in
more than a year.

Hitic, the investment arm of southern Hainan province,
failed to make a scheduled payment on 14.5 billion yen
(S$234.9 million) of Samurai bonds due in June.

"I suspect that Hitic will be closed," People's Bank of
China (PBOC) governor Dai Xianglong said at a press
conference.

If that happens, China could face a credit squeeze similar
to that which it faced in 1998 and last year after several
Chinese companies collapsed under billions of dollars in
debt. In Hongkong, banks cut lending to non-bank Chinese
entities by a fifth in the year following the failure of
Guangdong province's investment company, Gitic.

"If Hitic is closed, it will raise anxiety about other
Chinese financial institutions," said senior analyst Akira
Yoshieda at Japan Credit Rating Agency in Tokyo, which
assigned Hitic a default rating of D, the lowest-possible
grade.

Still, Mr Dai said the central bank would defend the
interests of investors in Hitic's debt.  "The government
insists the repayment of the debt and the interest be done
according to the law and the interests of investors will be
protected," he said. "The PBOC will have the responsibility
to urge and supervise the proper settlement of this issue."

Creditors said they are awaiting clarification of Hitic's
position.  "We have not heard from Hitic or the central
bank for a long time, so we don't know whether Hitic will
be closed or not," said Mr Hisatomo Watai, manager of
financial development at Shinsei Bank, a Japanese lender
acting as payment agent for the Samurai bonds. "It's good
news that the PBOC has showed its intention to take
responsibility to support us."

Mr Watai said the bank had sent letters to creditors asking
them if they want to meet to declare formally that Hitic
had defaulted on its debt.  Hitic owed 4.56 billion yuan
(S$934.8 million) at the end of 1998, when it reported an
operating loss of 6.73 million yuan, according to the last
available financial data.  (Bloomberg News, Straits Times
20-July-2000)

LAM SOON (HK): Posts 6-month loss
---------------------------------
Lam Soon (Hong Kong) registered an interim net loss of
$10.5M for the six months ended June this year, down from a
year-earlier net loss of $170.64M.  Turnover improved by
1.2% to $907.37M.  Its subsidiary Lam Soon Food Industries
reported a net loss of $32.62M during the same period, down
from a year-earlier interim net loss of $43.29M.  Turnover
rose 3.3% to $801.92M.

WAI HING CHINA INVEST.LTD: Facing winding up petition
-----------------------------------------------------
The High Court of Hong Kong SAR, Court of First Instance,
has scheduled a hearing on September 6 on the petition of
Yeung Kai Kei for the winding up of Wai Hing China
Investment Limited. A notice of legal appearance must be
filed on or before September 5.


=================
I N D O N E S I A
=================

BANK DAIICHI KANGYO INDO.: IBRA asset sale this year
BANK HANVIT INDO.: IBRA asset sale this year
BOB HASAN: IBRA asset sale this year
MODERN GROUP: IBRA asset sale this year
MOSQUITO COIL GROUP: IBRA asset sale this year
PT FICOR SEKURITAS: IBRA asset sale this year
PT INDOMART: IBRA asset sale this year
PT INDOMILK: IBRA asset sale this year
PT INDOMIWON: IBRA asset sale this year
PT INDOSIAR: IBRA asset sale this year
PT KARIMUN GRANITE: IBRA asset sale this year
PT OLEOCHEMICAL: IBRA asset sale this year
PT SALIM COAL: IBRA asset sale this year
PT SULFINDO: IBRA asset sale this year
SJAMSUL NURSALIM: IBRA asset sale this year
USMAN ADMAJAJA: IBRA asset sale this year
WISMA BCA: IBRA asset sale this year
----------------------------------------------------
The Indonesian Bank Restructuring Agency (IBRA) plans to
sell its ownership of around 26 companies in the remaining
period of this year in a bid to raise some Rp 7.2 trillion
(US$795.58 million) in cash, according to agency vice
chairman Arwin Rasyid.

Arwin said on Wednesday that Rp 3.62 trillion was expected
to be raised in the July-September period, while the
remaining half in the October- December period.
"We're optimistic we can meet the target. But this will all
depend on the market condition," he told reporters at a
press conference unveiling the agency's asset disposal
plan.

He explained that the companies to be sold were part of the
fixed assets transferred by former bank owners to the
agency to repay their debt to the government.  In a letter
of intent to the International Monetary Fund, the
government has promised that IBRA would disclose its
quarterly asset disposal time table.

Arwin said that in the third quarter, the companies to be
sold included mining firm PT Karimun Granite, Mosquito Coil
Group, Wisma BCA office building, and plantation companies.
These companies came from the Salim Group, the former owner
of Bank Central Asia (BCA).  Arwin said that the agency
would also sell five financial institutions transferred by
Usman Admadjaja, the former owner of Bank Danamon.

In addition, IBRA would also sell its share of securities
firm PT Ficor Sekuritas, Bank Daiichi Kangyo Indonesia, and
Bank Hanvit Indonesia.  Arwin said that the disposal
program in the fourth quarter included PT Oleochemical,
private TV station PT Indosiar, trading firm PT Indomart,
consumer firm PT Indomilk, chemical firm PT Sulfindo, food
seasoning maker PT Indomiwon, and mining firm PT Salim
Coal. These companies were transferred from the Salim
Group.

The other companies to be sold included those transferred
from Usman Admajaja; Bob Hasan, the former owner of the now
defunct Bank Umum Nasional; Modern Group, the former owner
of the now closed down Bank Modern; and Sjamsul Nursalim,
the former owner of the now defunct Bank BDNI. The complete
details of the companies to be sold this year can be
assessed from IBRA's website (http://www.bppn.go.id).

Arwin said that the selling of the companies were part of
IBRA's asset disposal program in a bid to raise a total of
Rp 18.9 trillion to help finance the current 2000 state
budget.  He said that so far the agency had raised around
Rp 4.42 trillion, which is 27 percent above target.
He said that out of the Rp 4.42 trillion cash raised, Rp
3.27 trillion came from IBRA's asset management credit
(AMC) division, which is responsible in restructuring and
recovering some Rp 256 trillion in bank non-performing
loans (NPLs).

The NPLs have been transferred from the country's
recapitalized banks, and closed down banks.  Arwin said
that in the third quarter, the AMC division was targeted to
recover around Rp 4.05 trillion, and Rp 3.89 trillion in
the fourth quarter.  The agency has named three banking
agents to handle the restructuring and loan recovery of
NPLs with individual size of between Rp 5-50 billion.

IBRA is focusing to restructure and recover the NPLs owed
by its top 21 debtors owing more than Rp 85 trillion in
bank debt.  The agency has signed a debt restructuring
agreement covering 35 percent of the total debts of the 21
debtors.

Once the loans have been restructured, IBRA is planning to
sell them back to the banking industry including local and
foreign banks.  Arwin also said that IBRA was planning to
divest its ownership in the publicly listed Bank BCA and
Bank Niaga, pending the approval of the House of
Representatives. The agency has nationalized the two banks.

Arwin declined to say the size of the divestment, but he
said that the agency was determined to sell a majority
depending on the market condition. IBRA has recently sold
28.5 percent of Bank BCA through an initial public offering
raising around Rp 900 billion.  The bank divestment program
is expected to fetch around Rp 3 trillion to contribute to
the Rp 18.9 trillion target.  (Jakarta Post  20-July-2000)


=========
J A P A N
=========

SEIYO CORP: Failure to burden banks with $3.2B loss
---------------------------------------------------
The filing for special liquidation by Saison Group's Seiyo
Corp. will cost creditor banks as much as 345.7 billion
yen (US$3.19 billion).

Seiyo Corp.'s total debt is estimated to be 553.8 billion
yen. The real estate development firm had its excess
liabilities balloon to 476.5 billion yen at the end
of June on a number of failed real estate investments.

Saison Group will repay about 300 billion yen in
accumulated debt left by Seiyo and its affiliates,
generating 99.4 billion yen in fresh funds by selling
assets and other means. It will also forgive about 35
billion yen in accounts receivable from Seiyo.


=========
K O R E A
=========

CENTRAL BANKING CORP.: Merger fails as finances lacking
-------------------------------------------------------
The planned merger between Cheju Bank and Central Banking
Corp., a local merchant bank, has been canceled, Central
Banking Corp. saying that yesterday it received a
notification from Cheju Bank Wednesday that the bank would
no longer pursue the planned merger.

The Financial Supervisory Commission (FSC) also confirmed
that the decision had been reported to the regulatory
agency.

"Cheju Bank has hoped that Central Banking would provide
100-150 billion won in capital to improve its management on
condition of a merger," said the merchant bank.  "It seems
that the bank notified the cancellation of the planned
merger after it discovered that Central Banking was not
able to provide financial support."

An FSC official said the liquidity crunch at Central
Banking seemed to be the stumbling block to the
consolidation.  Following the cancellation, the two
financial institutions are expected to come up with
independent self-rescue plans.

Cheju Bank plans to attract investments from Japanese
investors of Korean descent in its bid to lift its capital
adequacy ratio to 8 percent as set by the Bank for
International Settlement. But it's still unclear whether
the deal would prove successful.

The bank would need more than 100 billion won in capital to
seek independent survival. But its main shareholders are
reportedly unable to provide the capital for the bank.
Cheju Bank is to submit management normalization plans to
the FSC by September. If the regulatory commission turns
down the plans, the bank will end up being recapitalized by
the government and forced to go under a financial holding
company.

Central Banking will also announce a recapitalization plan
early next week, including a private-wealth donation of up
to 60 billion won by Kim Suk-ki, the merchant bank's
president and CEO.  According to the FSC, Central Banking
will also have to raise more than 100 billion won in
capital to bring its BIS capital ratio above the minimum
requirement of 8 percent.

The merchant bank, with its capital ratio below 4 percent,
has to unveil a self-rescue plan by August. If it fails to
obtain the FSC's approval, it will likely be merged by the
state-run Korea Deposit Insurance Corp. as part of the
government's plans to restructure the troubled local
merchant banking industry. (Korea Herald  21-July-2000)

DAEWOO CORP.: Creditors fail to approve break-up plan
-----------------------------------------------------
Daewoo creditors failed to approve a plan that would break
the company into three units, calling into question rescue
efforts for one of the most-indebted affiliates of Korea's
near-bankrupt Daewoo Group.

Korea Asset Management, a state-run agency which holds 27.7
per cent of Daewoo Corp's debt, opposed a proposal
discussed yesterday by 76 local financial institutions,
said Mr C.J. Lim, deputy general manager at Hanvit Bank's
workout department. Hanvit is chairing the reorganisation
of Daewoo.

"The biggest opposition came from Kamco along with some
other creditors such as Seoul Guarantee Insurance and Korea
Exchange Bank," he said.

For Daewoo, whose affiliates include one the world's
largest shipyards and the nation's No 2 car maker, keeping
Daewoo Corp afloat is the key to the survival of most of
the units if they are to be sold to allow creditors to
recover their money.

Daewoo Group now owes some US$80 billion (S$140 billion)
after declaring a year ago it was unable to repay its
debts.  In the reorganisation proposal, Daewoo Corp is to
be spun off into three separate companies from September --
trading, construction and a holding firm in charge of
selling bad debt.

Kamco, an agency charged with clearing bad debts from the
banking system, opposed the plan because it was concerned
it may not be able to recover debts the holding unit will
assume when it is spun off from Daewoo Corp, Mr Lim said.
Under the plan, the agency is to take over the holding
company.  Creditors plan to meet again today to try and
approve the reorganisation plan, Mr Lim said.  (Bloomberg
News, Straits Times  21-July-2000)

DAEWOO GROUP: FSS suing former management
-----------------------------------------
The Financial Supervisory Service decided Thursday to sue
ex-Daewoo management including its former chairman Kim Woo-
jung to prosecution as W23 trillion of the W42.9 trillion
net asset deficit of the troubled cheabul group was found
to have been made up. A high-ranking official of the FSS
said it found the manipulation of the account settlement
after analyzing 12 workout Daewoo subsidiaries. He said FSS
would file a suit against 25 - 26 former Daewoo managers
and those involved in the scandal in August.  (Digital
Chosun  21-July-2000)

HYUNDAI ELECTRONICS: Sells stake, proceeds to reduce debt
---------------------------------------------------------
Credit Agricole Lazard Financial Products Bank agreed to
buy 5 million shares of Hyundai Electronics Industries Co.
the third overseas investment bank in two months to buy
shares in the Korean memory chipmaker.

Hyundai, the world's second-largest memory chipmaker, told
the Korea Stock Exchange it agreed to sell the stock at
22,000 won per share in a transaction which will gain the
Korean company about $100 million dollars to be used to
reduce debt.

Credit Agricole's investment comes 10 days after UBS AG
paid $110 million for a 1 percent stake and just over a
month after Credit Suisse First Boston, paid $100 million
in June for a 1.2 percent shareholding.  Hyundai's shares
fell 8.8 percent to 20,250 won after the company said it
will record a loss for the first six months of this year.

Other Hyundai affiliates have sold equity holdings the past
30 days to help shore up their finances. Hyundai Group has
already raised $200 million from selling shares of its
semiconductor unit to CSFB and the State of Wisconsin
Investment Board, a U.S. pension fund.

Last month, Hyundai Investment Trust secured about $804
million from six financial companies, including American
International Group and W.L. Ross & Co. LLC. (Bloomberg
20-July-2000)

WOOBANG HOUSING & CONST.: Creditors reject fresh funds
------------------------------------------------------
Creditor banks of Woobang Housing & Const. (WBC) voted
Thursday not to provide additional rescue funds to the
apartment builder, which has been experiencing a series of
liquidity problems.

The company had been placed under the workout program since
early last year. The creditors, however, planned to convene
a plenary meeting on Saturday to discuss the issue once
again. A total of 22 creditor banks participated in the
vote Thursday over the proposal to channel W155 billion in
new funds to WBC, but with only 67% of the votes in favor,
they failed to reach a majority.  (Digital Chosun  21-July-
2000)


===============
M A L A Y S I A
===============

DIJAYA CORP: SC approves issue extension,debt pymt scheme
---------------------------------------------------------
Dijaya Corp. has received approval from the Securities
Commission for a six-month extension till Dec 31 for the
implementation of its proposed special issue.
The company said in a statement to the KLSE the SC had also
approved the revised utilisation of proceeds previously for
subscription of shares in Berjaya Starcity Sdn Bhd to repay
company bank borrowings. (The Star  20-July-2000)

KYM DEVELOPMENT: Sells some properties to pay down debts
--------------------------------------------------------
KYM Holdings Bhd has announced that its wholly-owned
subsidiary KYM Development (Perak) Sdn Bhd on July 14, 17
and 19 respectively entered into sale and purchase
agreements with Namcom Development Sdn Bhd to dispose of
several parcels of land measuring 188.61 acres for RM12mil.

KYM Holdings said in a statement that the 188.61 acres of
freehold vacant agriculture land in Ulu Kinta, Perak, was
approved for mixed development.  It said the proposed
disposal will enable the group to realise immediate cash
flow of RM12mil which will be utilised to repay bank
borrowings and to provide working capital for business
activities. (The Star  20-July-2000)

MYCOM BHD: Agreement with creditors rumored
-------------------------------------------
Shares of companies related to businessman Yap Yeong Seong,
widely known as Duta Yap, were active yesterday, as talk
was that the group, which is restructuring its debt with
the help of the Corporate Debt Restructuring Committee,
might have finally reached a solution with its creditors --
more than three months after its original target.

Mycom Bhd, whose prize asset is a semi-completed hotel-cum-
commercial development called the Duta Grand Hyatt in the
heart of Kuala Lumpur, has said it will sell assets as part
of its debt reorganisation to put itself and its associate
Olympia Industries back in business. Mycom's shares were up
3.5 sen to 39.5 sen with over 3.2 million shares done,
while Olympia closed also at 39.5 sen, up by 2 sen with
more than 3.5 million shares traded.  (Business Times  21-
July-2000)

SCK GROUP BHD: SC approves proposed restructure scheme
------------------------------------------------------
SCK Group Bhd has received approval from the Securities
Commission for its proposed restructuring scheme.
The company told the KLSE in a statement that the scheme
involved capital reduction, a renounceable rights issue,
issuance of new shares and listing of SCK's new shares on
the KLSE second board. (The Star  20-July-2000)

TELEKOM MALAYSIA: NTT aborts stake talks
----------------------------------------
JAPAN'S Nippon Telegraph and Telephone (NTT) said yesterday
that it has abandoned talks to buy a stake in Telekom
Malaysia, a move that analysts say could deny Telekom
crucial foreign know-how and money and leave it vulnerable
to fierce domestic competition in the growing mobile phone
market.

NTT said its two subsidiaries confirmed they had pulled out
of talks with Telekom regarding possible equity ties.
"The negotiations could not proceed as a mutually
satisfying agreement on certain key strategic issues could
not be reached," NTT said in a statement.

Analysts in Kuala Lumpur said the talks collapsed after
Telekom rejected a demand by NTT that it get a say in the
running of the nation's dominant telephone utility. The NTT
decision marked yet another setback for Malaysia, keen to
tap foreign technology and capital in order to upgrade its
telecommunications industry.

In May, Time Engineering called off talks to sell a key
stake to Singapore Telecommunications.  But that decision
was seen to have been influenced by the sometimes thorny
diplomatic ties between Malaysia and Singapore.

NTT Communications, the long-distance and international
carrier arm of NTT, and NTT DoCoMo Inc, its pioneering
mobile phone unit, had been talking with Malaysia's state
investment arm Khazanah Nasional Bhd since last year about
buying a stake in Telekom Malaysia.

NTT DoCoMo shares ended at 3 million yen yesterday, down
0.33 per cent, while NTT fell 1.4 per cent to 1.41 million
yen.  Telekom shares were unchanged at RM12.80.
Analysts said the market could have factored in the news.
Telekom, the country's second biggest listed company by
market capitalisation after power utility Tenaga Nasional
Bhd, confirmed the NTT move in a similarly-worded
statement.

Khazanah had been in talks to sell between 10-15 per cent
of Telekom to the NTT units.  Telekom needs a foreign
partner to provide access to cutting edge technology that
would enable it to tap the fast-growing domestic mobile
phone market.

NTT DoCoMo has pioneered the use of advanced mobile
telecommunications technology in Japan, and is expecting to
roll out a commercial third generation (3G) mobile system
in May 2001.  3G technology would allow operators to
provide high-speed data and clearer voice services to their
mobile clients.  Telekom said on Monday it had applied to
the government for a 3G licence.

"Competition in the cellular market is heating up and will
continue to heat up," said Lian Wah Seng,
telecommunications analyst at OCBC Investment Research in
Kuala Lumpur.  "The only real way Telekom can aggressively
expand is in the cellular business."

Most of Telekom's competitors in the mobile phone business
have foreign equity partners.  Analysts said Telekom would
probably start looking for another foreign partner,
although no other candidates were immediately obvious.
Telekom shares have under-performed the benchmark Kuala
Lumpur Stock Exchange Composite Index this year.

It has a price-earnings ratio of about 40 times, making
Telekom one of the most expensive telecommunications stocks
in the entire region.  According to Reuters Securities
3000, Singapore Telecommunications Ltd, the island nation's
dominant phone company is trading at a P/E ratio of about
20 times. (Business Times  20-July-2000)


=====================
P H I L I P P I N E S
=====================

PHILIPPINE NAT.BANK: Gov't okays Tan stake purchase
---------------------------------------------------
The Philippine Department of Finance said yesterday that it
will recommend the sale of the government's stake in
Philippine National Bank (PNB) to tycoon Lucio Tan, the
only bidder for the block in an auction on Wednesday.

Mr Tan, who controls 46 per cent of the lender, offered
6.27 billion pesos (S$246.75 million) for the government's
30 per cent stake. The auction represented the government's
second attempt in six weeks to unload the shares.

"We have approved (the sale) and a recommendation will be
prepared tomorrow so that the Committee on Privatisation
and the central bank's monetary board can consider it,"
said Finance Undersecretary Cornelio Gison, who headed the
committee in charge of selling the stake.

Proceeds from the sale will help the government meet this
year's Budget deficit, forecast at 62.5 billion pesos, and
meet commitments to the International Monetary Fund (IMF)
for the state to reduce its involvement in the banking
industry.  The additional shares will give Mr Tan total
control of a lender that lost 17 billion pesos in the past
two years because of increased bad loans and weak demand
for new loans.
"Tan is getting a bargain and the government is giving away
an asset, which they could have made a lot more money off,"
said Mark Mobius, managing director of Templeton Asset
Management, which owns 12 per cent of PNB.

Mr Tan offered the government a 600 million peso down
payment and to pay the entire balance on July 18, 2002.
Meanwhile, officials said yesterday that the World Bank and
the IMF have raised no objections to the sale of the
government's stake in PNB to Mr Tan.

"They have no objection. We are happy the government is out
of commercial banking business, Central Bank of the
Philippines governor Rafael Buenaventura said.  (Straits
Times, Bloomberg News  21-July-2000)

URBAN BANK: Bancommerce takeover hits snag
------------------------------------------
The Philippine Deposit Insurance Corp. (PDIC) has deferred
anew the signing of an agreement with Bank of Commerce for
the takeover of Urban Banking Corp., with at least two
major issues still to be threshed out.

This was learned from PDIC executive vice president Ricardo
Tan who refused to elaborate on the two issues that are
holding back the signing of the agreement.  Tan told The
STAR that it was Bancommerce that requested for the
postponement of the signing. On the other hand, the Bangko
Sentral ng Pilipinas (BSP) and the PDIC want to assure that
the interests of the depositors and creditors are
protected.

Tan said the Securities and Exchange Commission (SEC) and
Price Waterhouse, the receiver of Urbancorp Investment
Inc., the investment arm of Urban Bank, have expressed
other concerns.  "We have to resolve the issues in parallel
with other concerned parties," Tan said, when asked why
they have to postpone anew the signing of memorandum of
agreement (MOA) Bancommerce.

He said the regulators want to clarify everything before
signing an agreement. "We (PDIC and BSP) should ensure
depositors of Urban Bank are not placed on a disadvantaged
condition," he said.  "The same way with the SEC and the
receiver of the investment house, they want to put the
creditors and investors of UBII on better off position."

According to Tan, a separate proposal for the
rehabilitation of UBII is being deliberated on by the SEC
and the designated receiver.  Other PDIC sources said the
signing of an agreement is likely to take place before the
end of this month.

"We remain positive that we should be able to resolve all
the remaining concerns next week. Maybe next Wednesday
(July 26) we can arrive at a conclusion. We can't just sign
it (an agreement) just like that. We have to assure that
everything is in proper perspective," the sources said.

After the signing, the sources said Bancommerce has to
undergo a roadshow to assure investors and creditors that
Urban Bank will now undergo rigid rehabilitation and will
soon be back on its feet. (Philippine Star  20-July-2000)


=================
S I N G A P O R E
=================

METALOCK: Cash struggle turns to board struggle
-----------------------------------------------
Founder and ex-chairman of mainboard-listed Metalock,
veteran company figure Kurt Lindblad, has embarked on a
boardroom tussle with current executive chairman Kuah Kok
Kim.

Mr Lindblad, who set up the marine engineering firm more
than 40 years ago, wants to remove Mr Kuah as director and
appoint himself and three others to the board instead,
gaining management control.  Mr Lindblad, who resigned as
director last September, has tabled these resolutions for
approval at the forthcoming annual general meeting on Aug
8. He is Metalock's largest individual shareholder, with a
26.12 per cent stake.

The pair had their first public disagreement at the 1997
annual general meeting.  Mr Kuah, appointed as director
that year , had sent out letters just before the AGM to the
company's shareholders alleging a lack of checks on the
management of the company.

At that AGM, Mr Kuah was quoted as saying of the then-
chairman Mr Lindblad: ""He feels this tendency to manage
the company as a privately-owned company."

Although Mr Lindblad remained as director after that stormy
AGM, Mr Kuah managed to get his three nominees on board --
Cycle and Carriage Group managing director Mr Phillip Eng
Heng Nee, Mr Robert Tan, a former partner at Price
Waterhouse, and chairman and managing director of Hwa Hong
Corporation Ong Choo Eng.

Together with Mr Kuah, these three directors now make up
the board of directors at Metalock. Mr Lindblad stepped
down as chairman after 1997.  Mr Kuah, when contacted
regarding the resolutions, refused to say anything more
than: "He (Mr Lindblad) has not explained the reasons for
this proposal."

Neither Mr Lindblad or Ang and Partners which represents
him was available for comment.  Whether these resolutions
get passed at this year's AGM will depend on how much
support each camp can muster.  Mr Kuah has a deemed
interest of 22.02 per cent in Metalock.

With Mr Robert Tan's 1.47 per cent and Singapore Warehouse
Co, a wholly-owned subsidiary of Hwa Hong Corporation with
6.94 per cent, this may form a substantial voting block.
Metalock has been going through tough times recently,
slipping into the red for the year ended March 31 with
losses of $8.8 million.  This was due to a settlement of a
legal suit over a repair contract and the write-down of
slow-moving stock.  (Straits Times  21-July-2000)


===============
T H A I L A N D
===============

BANGKOK WATER RESOURCE: SCB files bankruptcy suit
-------------------------------------------------
Siam Commercial Bank (SCB) has filed a bankruptcy suit
against Bangkok Water Resource Co, a business owned by the
Sophonpanich Group, citing unpaid debt of 750 million baht.

However, if pending negotiations resolved the dispute next
week, the case would be withdrawn, an SCB executive said
yesterday.  The suit also covers Boonnam Boonamsub, a
textile businessman, and Somsak Leeswadtrakul, a steel
producer, who guaranteed loans to Bangkok Water Resource.

The SCB, a secured creditor, cited the company as first
defendant, Mr Boonnam as the second, and Mr Somsak as the
third. The interest and principal allegedly owed totals 750
million baht.  The Bankruptcy Court has scheduled the first
hearing of SCB's evidence on Sept 12 and will hear the
debtors' response on Oct 11.

Established in 1988 with 1.2 billion baht in registered
capital, Bangkok Water Resource serves industrial estates.
Mr Boonnam is a major shareholder of Thai Textile Industry
Plc and helped establish a Thai textile joint venture with
Taiwanese, Japanese and Indonesian investors. Mr Somsak
owns the SSP Group with an extensive network of
subsidiaries.

Siam Commercial Bank said it had loaned US$13.3 million to
Bangkok Water Resource, with Bangkok Bank contributing
$26.7 million. A holding company owned by the Sophonpanich
family, which owns Bangkok Bank, has a 50% stake in Bangkok
Water Resource. Bangkok Bank has a 10% stake.

Mr Boonnam and Mr Somsak had agreed to repay the loans as
common debtors if Bangkok Water Resource defaulted on
repayment. In the event of a default, the creditors could
convert the US-dollar offshore loans into baht loans.
As it had received only interest payments up to January
1998, SCB converted its portion of the loan into baht at
40.5 baht to the dollar, resulting in a debt of 750.38
million baht. Bangkok Bank did likewise, converting its
share to 1.37 billion baht.

Bangkok Water Resource had pledged 64 plots of land, with
an appraised total value of 1.65 billion baht, as
collateral. The amount falls short of the money owed by
more than two million baht. SCB said that Bangkok Water
Resource apparently owned no other properties.

SCB said two reminders for payment had been ignored. As the
company's liabilities exceeded its assets, it should be
placed in receivership.  Mr Boonnam told the court that
defence testimony would be given by Vira Ramyarupa,
executive director of Bangkok Bank, and Chalee
Sophonpanich.

Mr Somsak told the court that the SCB's move was aimed at
damaging his reputation. He had many assets and businesses
of sufficient value to repay the SCB. Contradicting the
SCB, he claimed that properties pledged as collateral were
worth more than the money owed.

A source at Bangkok Water Resource said that SCB had asked
for additional collateral because, after the debt was
converted into baht, the debt had doubled in baht terms
during the country's financial crisis and depreciation of
the currency.

SCB knew that the company still had about 400 rai of land
free of obligations, he claimed. The real issue was the
value of the land but SCB had decided to file suit before
an agreement could be reached, he said.

The source said that Bangkok Water Resource would have to
settle the debt eventually to protect the guarantors. But
the deal would have to be based on a fair appraisal of the
properties.  If the company was closed, this would have to
be done after the suit was settled, otherwise the
guarantors would suffer financially, he said.

Chatri Sophonpanich, Bangkok Bank's chairman, said that if
the suit was successful, Bangkok Water Resource would be
unable to resume supplying water to factories in Samut
Prakan. After the company's closure, the shareholders would
share losses equivalent to the registered capital of 1.2
billion baht.

However, the issue that led to the suit was the value of
land pledged as collateral. Contrary to suggestions that
Bangkok Water Resource had refused to increase collateral,
Mr Chatri said he had received a report last week that the
company had made a written agreement to transfer more land
to cover debt repayments.

"Bangkok Bank and Siam Commercial Bank are common
creditors. When one creditor files a bankruptcy suit, the
other creditor will automatically get its share. It does
not have to file a separate backruptcy suit," he said.

Deja Tulananda, Bangkok Bank's senior executive vice-
president, said Bangkok Bank had earlier filed a case
against Bangkok Water Resource in the Civil Court.
An SCB executive, who declined to be named, said the
bankruptcy suit had not stemmed from any dispute with
Bangkok Bank. The case had to be filed in line with the
Bank of Thailand's instructions on debt restructuring.

Negotiations would continue as Bangkok Water Resource had
asked for talks. If a satisfactory outcome emerged next
week, the suit would be withdrawn, he said. (Bangkok Post
20-July-2000)

SIAM CITY BANK: Newbridge to resubmit bid
-----------------------------------------
Newbridge Capital plans to resubmit a bid for a majority
stake in state-owned Siam City Bank, according to Bien Kiat
Tan, managing director of the US investment fund.

The Bank of Thailand scrapped talks with Newbridge last
month, citing disagreement on sales terms.  Bank
regulators, who seized Siam City Bank in 1998, are
deliberating options on the future of the bank, including a
possible new auction round.

Mr Tan said Newbridge would look to team up with Thai
investors for a new bid. Lehman Brothers was serving as
adviser for the fund. He said the fund's experience in
rehabilitating distressed assets was one of the company's
strong points. Newbridge, set up in 1994, took a majority
stake in Korea First Bank two years ago.

Previous talks with the central bank for a stake in Siam
City Bank fell through due to disagreements on loan
classification and management terms, Mr Tan said.
A number of the bank's restructured loans had the potential
to turn bad again, as restructuring had been done only
through rescheduling and interest rate cuts, he said.
Newbridge had also proposed a modification to the central
bank's loss-sharing scheme for bad loans.

"We were told by the government that we offered the highest
premium for the bank," Mr Tan said, but added that
disagreement hinged on the technical details.

An audit by Newbridge had found substandard loans
accounting for around 90% of Siam City Bank's portfolio,
against figures of around 75% as claimed by the central
bank. But Mr Tan said Siam City Bank's diversified
portfolio and asset size were its main attractions for the
fund. Newbridge was intent on being a long-term investor in
the banking system, he stressed.

"We want to be responsible investors, not just to win the
bid and make profits in the short-term," Mr Tan said,
adding that if successful, Newbridge would bring in new
technology and recruit a solid management team to run Siam
City Bank.

Mr Tan declined to provide details of Newbridge's new bid,
but said its previous bid had sought to manage Siam City as
a single bank, with no separation of good and bad loans.
In the past two years, the central bank has sold majority
stakes in two banks to foreign investors-Nakornthon to
Britain's Standard Chartered, Radanasin to Singapore's
United Overseas Bank.

A deal giving 75% control in Bangkok Metropolitan Bank to
HSBC Holdings has also been announced, with final contracts
expected to be signed within a few months. (Bangkok Post
20-July-2000)

SRITHAI SUPERWARE PLC: To cut its debt burden
---------------------------------------------
Srithai Superware Plc plans to reduce its debt burden by
partially redeeming its secured debentures worth US$10
million (Bt402 million) ahead of schedule on July 28.

The company yesterday said it would repay the $10 million
loan principal by redeeming the secured debentures with
floating interest rate. The move is in line with a
rehabilitation plan administered by SVG Na Thalang Co Ltd.
Under the plan, part of the company's debt would be
converted into equity, improving its operating result.
Following the $10 million repayment, the company's debt
obligation will be reduced to $84.2 million in secured
debentures with floating rate.  (The Nation  21-July-2000)

TPI POLENE: Creditors okay restructure deal
-------------------------------------------
TPI Polene (TPIPL), a cement-making unit of Thai
Petrochemical Industry Plc (TPI), said it planned to raise
as much as $270 million (Bt10.85 billion) in new capital in
the fourth quarter after its 75 creditors signed a $1.3
billion debt restructuring deal yesterday.

TPI chief executive Prachai Leophairatana said the capital
would be raised through a private placement. Of the $270
million, about $180 million would be raised from
institutional investors to finance a buyback of TPIPL debt
at a 50 per cent discount. The buyback is part of TPIPL's
debt restructuring plan, which also asks its creditors to
convert about 10 per cent of its total debt into equity.
The remaining $90 million would be offered to potential
strategic partners.  The company has to date held
discussions with a number of possible candidates, including
Holderbank, La Farge, Blue Circle and Cement of Mexico.

"The $90 million will be used to finance TPIPL' s plan to
build a fourth cement unit. When completed, TPIPL's total
production capacity will increase by three million tonnes
from the current nine million," he said.

With a production capacity of 12 million tonnes, TPIPL's
output will be as large as that of Siam City Cement (SCCC),
the country's second largest cement maker. The increase in
output is intended for export, especially the US market,
Prachai said, adding that TPIPL's cement plants are now
running at full capacity, of which about 60 per cent is
exported.

The new factory is expected to be operational in six
months, he said. Regarding the $3.5 billion debt-
restructuring plan of its parent company, TPI, Prachai said
the process was expected to be delayed by one month from
July 28. The delay was due to the court's legal execution
officers having not yet informed TPI's rehabilitation
planner, Effective Planner Ltd, of the exact value of the
total debt.

"The total debt, as claimed by creditors to date, is
several billion baht higher than the actual value. That's
why the final figure has not yet been decided upon,'' he
said.

The adjusted debt-restructuring plan will not be that
different from the original, where the emphasis has been
put on a debt hair-cuton raising capital and selling off
non-core assets.  Prachai said TPI plans to sell more than
3,000 rai of land in its industrial estate in Rayong. The
land sale will raise about $200 million to $300 million, he
said.  (The Nation  21-July-2000)


S U B S C R I P T I O N  I N F O R M A T I O N

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